HomeMy WebLinkAbout15950 Financial StatementsCITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Basic Financial Statements
September 30, 2023
(With Independent Auditor's Report Thereon)
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
September 30, 2023
Table of Contents
Independent Auditor's Report
Management's Discussion and Analysis (Required Supplementary Information)
Pages
1-2
3-8
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 9
Statement of Activities 10
Fund Financial Statements:
Balance Sheet — Governmental Funds 11
Reconciliation of the Balance Sheet - Governmental Funds to the
Statement of Net Position 12
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds 13
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds to the Statement of Activities 14
Notes to Basic Financial Statements 15-23
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule — Special Revenue Fund
Note to Required Supplementary Information
24
25
Other Reports:
Independent Auditor's Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 26-27
Schedule of Findings and Responses 28
Management letter in Accordance with the Rules of the Auditor General of the
State of Florida 29-30
Independent Accountant's Report on Compliance with Sections 163.387(6) and (7),
Florida Statutes 31
Independent Auditor's Report
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
& Ta„doe, LLP
5805 B... Legoo., Dri.,e I Suit.e 145 I M,a..,,, FL 33126
Ti:e(305) 269-8633 I Fax: (305) 265-0652 www.s K)tllp.
Independent Auditor's Report
The Board of Directors
City of Miami Omni Community Redevelopment Agency:
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of
the City of Miami Omni Community Redevelopment Agency (the Agency), a component unit of the City of
Miami, Florida, as of and for the year ended September 30, 2023, and the related notes to the financial
statements, which collectively comprise the Agency's basic financial statements as listed in the table of
contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and each major fund of the Agency as of September 30, 2023,
and the respective changes in financial position thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Agency, and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Agency's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements
are considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
1
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Agency's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Agency's ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 9, 2024 on
our consideration of the Agency's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Agency's internal control over financial reporting.
AM.* nkfte clachittio.6, & W&, LIP
Miami, Florida
January 9, 2024
2
Management's Discussion and Analysis
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
This section of the City of Miami Omni Community Redevelopment Agency (the Agency) financial
statement presents managements analysis of the financial performance during the fiscal year that ended
September 30, 2023. This discussion addresses whether or not the Agency as a whole is better off or
worse off as a result of this year's activities.
Overview
The purpose of the Agency is to eliminate blight and slum conditions within the redevelopment area of
the Agency, pursuant to the redevelopment plans of the Agency for new residential and commercial
activity in the Omni area.
The Agency's primary source of revenue is tax -increment funds. This revenue is computed by applying
the operating tax rate for the City and the County, multiplied by the increased value of property located
within the boundaries of the redevelopment areas of the Agency, over the base property value, minus 5%.
Both the City and the County are required to fund this amount annually without regard to tax collections
or other obligations.
On June 24, 1996, the City and County entered into an Interlocal Cooperation Agreement with the
Agency, whereby the Agency will receive over a three-year period, commencing on the date of the
Agreement, a total of $1.2 million of tax increment revenue contributed by the City and County. If within
the three-year period the Agency receives more than $1.2 million in tax increment revenue, the excess
shall be remitted to the County for the Performing Arts Center Project. Thereafter, the Agency shall remit
to the County tax increment funds received up to, but no more than $1.43 million per year. The obligation
to pay the $1.43 million each year shall cease at such time that the County has no Performing Arts Center
construction bonds outstanding.
On December 31, 2007, the City and County entered into an Interlocal Agreement with the Agency,
whereby in addition to the $1.43 million per year described above for the Performing Arts Center project,
the Agency shall remit on March 31, 2010 and every March 31st thereafter ending on March 31, 2012 an
amount equal to 35% of the amount by which the increment revenue exceeds $1.43 million, and on March
31, 2013 and every March 31st thereafter until March 31, 2027, including any additional time extensions
beyond March 31, 2027, an amount equal to the greater of $1.43 million or 35% of the increment revenue,
provided that the mounts remitted by the Agency do not exceed $25 million in any fiscal year.
On August 6, 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property
located within the redevelopment district (referred to as Trust revenues). The agency agreed to use the
Trust revenues for debt service on, and other obligations relating to, existing debts of the Agency only
after all other available tax increment revenues have been exhausted for such purpose, and to remit to the
Trust on the last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt
service on, or other obligations relating to, existing debts of the Agency.
Further, the Agency's policy is set by a board of directors comprised of the five members of the City
commission and are separate, distinct and independent from the governing body of the City; and its
management plan is executed by a small professional staff led by its executive director.
3
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
Financial Highlights
The assets of the Agency exceeded its liabilities at the close of its most recent fiscal year by $44,551,856.
Of this amount, $32,047,507 was invested in capital assets net of related debt, $2,521,095 was restricted
for debt service, resulting in $9,983,254 (unrestricted net position) available to meet the Agency's
obligations to citizens in the Omni district.
At the close of the current fiscal year, the Agency's governmental funds reported combined ending fund
balances of $27,325,903 a decrease of $20,190,710 in comparison with the prior year.
Overview to the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Agency's basic financial
statements. The Agency's basic financial statements are comprised of three components:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
In addition, the Agency reports, as required supplementary information, a budget to actual comparison
and notes to the required supplementary information.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
Agency's finances, in a manner similar to a private -sector business (i.e. economic resources and
measurement focus). The statement of net position presents information on all of the Agency's assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the Agency is
improving or deteriorating. The statement of activities presents information showing how the Agency's
net position changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods.
The government -wide financial statements may be found on pages 9 and 10 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Agency, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the
funds of the Agency are categorized as governmental funds.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and outflows of
expendable resources, as well as on balances of expendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government's near -term financing requirements.
4
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The Agency maintains three individual governmental funds during fiscal year 2023. Information is
presented separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for each governmental fund.
The basic governmental fund financial statements can be found on pages 11 and 13 of this report. The
reconciliations between the governmental funds and governmental activities can be found on pages 12
and 14 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements. The notes to the basic financial statements can be
found on pages 15 to 23 of this report.
Budgetary Highlights
The Agency adopts an annual budget on an individual fund basis. Budgetary comparison schedules have
been provided for the Special Revenue Fund to demonstrate compliance with the budget on page 24 of
this report.
The following is a brief review of the significant variances between the original budget and the final
budget, as well as the significant variances between the final budget and actual amounts, for the Special
Revenue Fund:
• The significant variance between the final budget and actual amounts reported for investment income
is a result of investment income not being an item budgeted by management of the Agency.
• The significant variance between the final budget and actual amounts reported for community
redevelopment expenditures is a result of redevelopment projects that either did not commence yet or
were not yet completed as planned.
Financial Analysis
Government -Wide Analysis
Our analysis of the financial statements of the Agency begins below. The Statement of Net Position and
the Statement of Activities report information about the Agency's activities that will help answer
questions about the position of the Agency. A comparative analysis is provided below.
5
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
Table A-1
Summary of Net Position
FY 2023 FY 2022
Current assets $ 27,537,021 48,493,396
Lease receivable - 1,266,208
Capital assets, net 32,047,507 26,106,136
Total assets 59,584,528 75,865,740
Current liabilities 211,118 1,025,549
Non -current liabilities 14,821,554 17,093,457
Total liabilities 15,032,672 18,114,006
Net position:
Net investment in capital assets 32,047,507 26,106,136
Restricted 2,521,095 12,363,801
Unrestricted 9,983,254 18,059,355
Total net position $ 44,551,856 56,529,292
• Total assets decreased from the prior year mainly as a result of more cash used to pay down on grants
and projects throughout the year compared to the prior year, as well as the decrecognition of the lease
receivable and liability.
• Total liabilities decreased from the prior year as a result of the current year's debt service payment on
the tax increment notes.
• Total net position increased from the prior year as a result of the overall net increase in operations.
Table A-2
Summary of Changes in Net Position
FYE 2023 FYE 2022
Revenues:
Charges for services $ 921,923 341,937
Intergovernmental:
Operating 120,324 114,723
General revenues:
Tax increment revenue 33,559,256 32,024,597
Investment income 1,497,940 (83,903)
Other 12,621 58,762
Total revenues 36,112,064 32,456,216
Expenses:
General government 1,039,843 1,477,744
Community redevelopment 46,371,686 17,083,443
Interest on long-term obligations 677,971 760,196
Total expenses 48,089,500 19,321,383
Change in net position
Net position, beginning of year
(11,977,436) 13,134,833
56,529,292 43,351,727
Net position, end of year $ 44,551,856 56,529,292
6
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
• Charges for services increased in the current year as a result of the new residential building, leasing to
individuals for one-year terms.
• Tax increment revenue increased in the current year as a result of the increase in the payout by the
City and the County.
• Community redevelopment expenditures Increased in the current year as a result of the significant
increase in grant and project activity from the prior year.
Individual Fund Analysis
The fund balance for the Special Revenue Fund decreased from $35,152,812 at September 30, 2022 to
$24,804,808 at September 30, 2023. Fund balance for the Redevelopment Projects Fund decreased from
$9,842,706 at September 30, 2022 to $0 at September 30, 2023. Fund balance for the Debt Service Fund
remained the same at $2,521,095 as September 30, 2022 and September 30, 2023.
Since the Agency only has governmental funds/activities, the changes in fund balance also explain the
increases in net position. The following are key factors in the changes in fund balances for 2023:
■ The significant decrease in fund balance in the Special Revenue Fund was mainly due to the
significant increase in grant and project activity from the prior year.
Capital Assets
As of September 30, 2023, the Agency's investment in capital assets, net of accumulated depreciation,
amounted to $32,047,507, decreasing from $26,106,136 as of September 30, 2022.
Summary of Capital Assets
(Net of Accumulated Depreciation)
Fiscal Year Fiscal Year
2023 2022
Land $ 11,447,103 $ 11,447,103
Construction -in -progress 6,432,142
Infrastructure 14,168,262 14,659,033
Total capital assets $ 32,047,507 $ 26,106,136
Additional capital asset information can be found on page 19 of this report.
Debt Management
On March 6, 2018, the Agency issued Tax Increment Revenue Note, Tax-exempt Series 2018A, in the
aggregate principal amount of $10,000,000, maturing through September 1, 2029, at an interest rate of
3.25% payable semi-annually on March 1 and September 1. The note is secured by a pledge of tax
increment revenue amounts received for the Omni Community Redevelopment area.
Pledged revenues on the note includes all tax increment funds accruing within the redevelopment area,
after amounts deducted for any payments of the Interlocal Agreement obligations and to payment on a
parity therewith of other outstanding authorized notes. The proceeds of the note are to be used to finance
a portion of the 2009 amended Omni Area Community Redevelopment Plan, including support of
affordable housing, acquisition of real estate and other capital projects (the "2017 Project").
7
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2023
On July 13, 2018, the Agency issued Tax Increment Revenue Note, Taxable Series 2018B, in the
aggregate principal amount of $15,000,000, maturing through September 1, 2029, at an interest rate of
4.49% payable semi-annually on March 1 and September 1. The note is secured by a pledge of tax
increment revenue amounts received for the Omni Community Redevelopment area. Pledged revenues
on the note includes all tax increment funds accruing within the redevelopment area, after amounts
deducted for any payments of the Interlocal Agreement obligations and to payment on a parity of the
2018A Note.
The proceeds of the note are to be used to finance a portion of the 2009 amended Omni Area Community
Redevelopment Plan, including support of affordable housing, acquisition of real estate and other capital
projects (the "2017 Project").
As of September 30, 2023, the Agency had notes payable outstanding in the amount of $14,745,000
compared to $16,885,000 of as of September 30, 2022. No new debt was issued during fiscal year 2023.
Additional debt information can be found on pages 20 of this report.
Requests for Information
This financial report is designed to provide a general overview of the Agency's finances. Questions
concerning any of the information provided in this report or requests for additional information should be
addressed to the Executive Director, 1401 North Miami Avenue, Miami, Florida 33136.
8
Basic Financial Statements
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Net Position
September 30, 2023
Governmental
Activities
Assets
Current assets:
Cash $ 24,834,306
Restricted cash equivalents 2,526,095
Interest receivable 176,620
Non -current assets:
Capital assets (net of accumulated depreciation):
Land 11,447,103
Construction -in -progress 6,432,142
Infrastructure 14,168,262
Total assets 59,584,528
Liabilities
Current liablities:
Accounts payable and accrued liabilities 211,118
Non -current liabilities:
Due within one year
Notes payable 2,225,000
Due in more than one year:
Notes payable 12,520,000
Compensated absences 76,554
Total liabilities 15,032,672
Net Position
Net investment in capital assets 32,047,507
Restricted for debt service 2,521,095
Unrestricted 9,983,254
Total net position $ 44,551,856
The accompanying notes are an integral part of the basic financial statements.
9
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Activities
Year ended September 30, 2023
Program
Revenues
Net Revenue
Operating (Expense) and
Charges for Grants and Changes in Net
Expenses Services Contributions Position
Functions/Programs
Governmental Activities:
General government $ 1,039,843 921,923 - (117,920)
Community redevelopment 46,371,686 - 120,324 (46,251,362)
Interest on long-term obligations 677,971 - (677,971)
Total expenses $ 48,089,500 921,923 120,324 (47,047,253)
General revenues:
Tax increment revenue 33,559,256
Other 12,621
Investment income (loss) 1,497,940
Total general revenues 35,069,817
Change in net position (11,977,436)
Net position - beginning of the year 56,529,292
Net position - end of the year $ 44,551,856
The accompanying notes are an integral part of the basic financial statements.
10
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Assets
Cash
Restricted cash equivalents
Interest receivable
Total assets
Liabilities
Accounts payable and accrued liabilities
Balance Sheet
Governmental Funds
September 30, 2023
Special Redevelopment
revenue projects
$ 24,839,306
176,620
$ 25,015,926
$ 211,118
Debt service
Total
governmental
funds
(5,000) 24,834,306
2,526,095 2,526,095
176,620
2,521,095 27,537,021
Fund balances
Spendable:
Restricted - 2,521,095 2,521,095
Committed 24,804,808 - 24,804,808
Total fund balances 24,804,808 2,521,095 27,325,903
Total liabilities, deferred inflows of resources
and fund balances $ 25,015,926 2,521,095 27,537,021
The accompanying notes are an integral part of the basic financial statements.
11
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Reconciliation of the Balance Sheet - Governmental Funds
to the Statement of Net Position
September 30, 2023
Total fund balance - governmental funds $ 27,325,903
Amounts reported for governmental activities in the statement of net
position consist of:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. 32,047,507
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds:
Notes payable (14,745,000)
Compensated absences (76,554)
Net position of governmental activities
The accompanying notes are an integral part of the basic financial statements.
12
(14,821,554)
$ 44,551,856
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year ended September 30, 2023
Total
Special Redevelopment governmental
revenue projects Debt servicce funds
Revenues:
Tax increment $ 33,559,256 - - 33,559,256
Intergovernmental 120,324 - - 120,324
Lease 921,923 - - 921,923
Investment income (loss) 1,497,940 - - 1,497,940
Other 12,621 - - 12,621
Total revenues
Expenditures:
Current:
General government
Community redevelopment
Debt service:
Principal
Interest and other charges
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
36,112,064 - - 36,112,064
1,039,843 - - 1,039,843
42,602,254 9,842,706 - 52,444,960
43,642,097 9,842,706
(7,530,033) (9,842,706)
2,140,000 2,140,000
677,971 677,971
2,817,971 56,302,774
(2,817,971) (20,190,710)
Other financing sources (uses):
Transfers in - - 2,817,971 2,817,971
Transfers out (2,817,971) - - (2,817,971)
Total other financing sources (uses) (2,817,971) - 2,817,971 -
Net change in fund balances
Fund balances - beginning
Fund balances - ending
(10,348,004)
35,152,812
$ 24,804,808
(9,842,706)
9,842,706
2,521,095
(20,190,710)
47,516,613
2,521,095 27,325,903
The accompanying notes are an integral part of the basic financial statements.
13
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds to the Statement of Activities
Year ended September 30, 2023
Net change in fund balances - total governmental funds $ (20,190,710)
Amounts reported for governmental activities in the statement of activities are
different because:
The govemmental funds reported capital outlays as expenditures,
however, in the statement of activities, the cost of those assets is allocated
over their estimated useful lives:
Expenditures for capital assets
Depreciation expense
Items reported in the statement of activities do not require the use of
current financial resources, and therefore, are not reported as expenditures
in governmental funds:
Decrease in compensated absences
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction has any effect on net position. Also, governmental funds
report the effect of premiums, discounts and similar items when debt is
first issued, whereas these amount are deferred and amortized on the
statement of activities.
Principal payments on long-term obligations:
Notes payable
Change in net position of governmental activities
6,432,142
(490,771)
2,140, 000
The accompanying notes are an integral part of the basic financial statements.
14
5,941,371
131,903
2,140, 000
$ (11,977,436)
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
1. Summary of Significant Accounting Policies
This summary of the City of Miami Omni Community Redevelopment Agency (the Agency) significant
accounting policies is presented to assist the reader in interpreting the basic financial statements. The
policies are considered essential and should be read in conjunction with the basic financial statements.
The accounting policies of the Agency conform to accounting principles generally accepted in the United
States of America applicable to governmental units. This report, the accounting systems and
classification of accounts conform to standards of the Governmental Accounting Standards Board
(GASB), which is the accepted standard -setting body for establishing governmental accounting and
financial reporting principles. The following is a summary of the more significant policies:
A. Reporting Entity
The Agency was established in 1986 by the City of Miami, Florida (the City) under the provisions of
Section 163, Florida Statutes. The purpose of the Agency is to eliminate blight and slum conditions
within the redevelopment area of the agency pursuant to the redevelopment plans of the Agency for new
residential and commercial activity of the Omni area. The board of directors of the Agency are
comprised of the five members of the City commission and are separate, distinct and independent from
the governing body of the City.
The City entered into an Interlocal Cooperation Agreement on June 24, 1996 with Miami -Dade County,
Florida (the County) whereby tax increment revenue collected by the parties would be paid to the
Agency and used in accordance with the approved budgets of the redevelopment plans and terms and
conditions of the Interlocal Agreement for the benefit of the Agency. In addition, on March 13, 2000,
the Agency entered into an Interlocal Agreement with the City. As stated on the agreement, the City has
agreed to provide financial support to the Agency for the planning, development, program management,
technical assistance, coordination, monitoring and other services needed for the projects. In addition, the
City has agreed to provide personnel and other resources including the use of the City attorney, which
shall serve as counsel and the City Clerk, which will serve as the official custodian of records.
For financial reporting purposes, the Agency is a component unit of the City and is thus included in the
City's comprehensive annual financial report as a blended component unit.
B. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all the nonfiduciary activities of the Agency. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business —
type activities, which rely to a significant extent on fees and charges for support. The Agency does not
have any business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
15
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
1. Summary of Significant Accounting Policies (continued)
B. Government -wide and Fund Financial Statements (continued)
Separate financial statements are provided for the governmental funds. Major individual governmental
funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resource measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Agency considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Tax increment revenue, intergovernmental revenues, lease revenue, and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion due within the current fiscal period is considered
to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The Agency reports the following major governmental funds:
The Special Revenue Fund accounts for the proceeds of specific revenue sources (other than major
capital projects) that are legally restricted for specified purposes. Specifically, this fund reports tax
increment revenue collected from the City, County and The Children's Trust; and
The Redevelopment Projects Fund accounts for construction of certain redevelopment projects
funded by the Tax Increment Revenue Notes, Tax-exempt Series 2018A and Taxable Series 2018B.
The Debt Service Fund accounts for the accumulation of resources for, and the payment of, bond
principal and interest on the Tax Increment Revenue Notes, Tax-exempt Series 2018A and Taxable
Series 2018B.
D. Equity in Pooled Cash
The Agency participates in the City's pool on a dollar equivalent and daily transaction basis. Investment
income (which includes interest and unrealized gains and losses) is distributed monthly based on a
monthly average balance. All such cash is reflected as equity in pooled cash on the Agency's
governmental fund balance sheet and statement of net position.
E. Restricted Cash Equivalents
Unspent proceeds from the Tax Increment Revenue Notes, Tax-exempt Series 2018A and Taxable Series
2018B are considered restricted because their use is limited by the applicable bond indenture, and
currently consists of money market funds that have an original maturity of three months or less from the
date of purchase.
16
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
1. Summary of Significant Accounting Policies (continued)
F. Capital Assets
Capital assets are defined by the Agency as assets with an initial, individual cost of more than $1,000 and
an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation, unless donated by a related entity (e.g. the City). Capital assets donated by
a related entity are recorded at the net book value of the related entity at the time of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Capital assets of the Agency are depreciated using the straight-line method over
the following estimated useful lives:
Assets Years
Furniture and equipment 5
Infrastructure 5-35
G. Fund Balance / Net Position
Fund balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes
criteria for classifying fund balances into specifically defined classifications and clarifies definitions for
governmental fund types. Fund balances for governmental funds are reported in classifications that
comprise a hierarchy based primarily on the extent to which the government is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent, as follows:
• Non spendable fund balance - amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
• Restricted fund balance - amounts that are restricted to specific purposes when constraints placed on
the use of resources are either by (a) externally imposed by creditors (such as debt covenants),
grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislations.
• Committed fund balance - amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the government's highest level of decision -making authority.
• Assigned fund balance - amounts that are constrained by the government's intent to be used for
specific purposes, but are neither restricted nor committed.
• Unassigned fund balance - amounts that have not been assigned to other funds and that have not been
restricted, committed, or assigned to specific purpose within the general fund.
When both restricted and unrestricted amounts are available for use, it is the Agency's practice to use
restricted resources first. Additionally, the Agency would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance.
17
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
1. Summary of Significant Accounting Policies (continued)
H. Fund Balance / Net Position (continued)
Net position
The government -wide financial statements utilize a net position presentation. Net position can be
categorized as net investment in capital assets, restricted, or unrestricted. The first category represents
capital assets, less accumulated depreciation and net of any outstanding debt associated with the
acquisition of capital assets. Restricted net position represents amounts that are restricted by requirement
of debt indenture or enabling legislation. Unrestricted net position represents the net position of the
Agency which are not restricted for any project or purpose.
I. Tax Increment Revenues
The Agency's primary source of revenue is tax increment funds. This revenue is computed by applying
the operating tax rate for the City and the County, multiplied by the increased value of property located
within the boundaries of the redevelopment areas of the Agency, over the base property value, minus
5%. Both the City and the County are required to fund this amount annually without regard to tax
collections or other obligations.
On June 24, 1996, the City and County entered into an Interlocal Cooperation Agreement with the
Agency, whereby the Agency will receive over a three-year period, commencing on the date of the
Agreement, a total of $1.2 million of tax increment revenue contributed by the City and County. If within
the three-year period the Agency receives more than $1.2 million in tax increment revenue, the excess
shall be remitted to the County for the Performing Arts Center Project. Thereafter, the Agency shall
remit to the County tax increment funds received up to, but no more than $1.43 million per year. The
obligation to pay the $1.43 million each year shall cease at such time that the County has no Performing
Arts Center construction bonds outstanding.
On December 31, 2007, the City and County entered into an Interlocal Agreement with the Agency (the
"Global Agreement"), whereby in addition to the $1.43 million per year described above for the
Performing Arts Center project, the Agency shall remit on March 31, 2010 and every March 31'
thereafter ending on March 31, 2012 an amount equal to 35% of the amount by which the increment
revenue exceeds $1.43 million, and on March 31, 2013 and every March 31st thereafter until March 31,
2027, including any additional time extensions beyond March 31, 2027, an amount equal to the greater
of $1.43 million or 35% of the increment revenue, provided that the mounts remitted by the Agency do
not exceed $25 million in any fiscal year. For the fiscal year ended September 30, 2023, the Agency
remitted a total of $22,017,522 to the County.
On August 6, 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property
located within the redevelopment district (referred to as Trust revenues). The Agency agreed to use the
Trust revenues for debt service on, and other obligations relating to, existing debts of the Agency only
after all other available tax increment revenues have been exhausted for such purpose, and to remit to the
Trust on the last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt
service on, or other obligations relating to, existing debts of the Agency. For the fiscal year September
30, 2023, the Agency remitted a total $1,400,153 to the Trust.
18
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
1. Summary of Significant Accounting Policies (continued)
J. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Although these estimates are
based on management's knowledge of current events and actions it may undertake in the future, they
may ultimately differ from actual results.
2. Cash and Restricted Cash Equivalents
At September 30, 2023, the Agency's cash and restricted cash equivalents consist of the following:
Cash:
Pooled cash
Restricted cash equivalents:
Money market funds
$ 24,834,306
$ 2,526,095
Custodial Credit Risk is the risk that in the event of a bank failure, the Agency's deposits may not be
returned to it. In addition to insurance provided by the Federal Deposit Insurance Corporation (FDIC),
deposits are held in banking institutions approved by the State of Florida, State Treasurer to hold public
funds. Under the Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", the State
Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking
institution eligible collateral. In the event of a failure of a qualified public depository, the remaining
public depositories would be responsible for covering any resulting losses.
3. Capital Assets
Capital asset activity for the fiscal year ended September 30, 2023 was as follows:
Capital assets, not being depreciated:
Land
Construction -in -progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Infrastructure
Furniture and equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Infrastructure
Furniture and equipment
Balance Transfers / Transfers / Balance
9/30/2022 Additions Deletions 9/30/2023
$ 11,447,103 - 11,447,103
- 6,432,142 - 6,432,142
11,447,103
18,053,865
22,407
6,432,142 - 17,879,245
- 18,053,865
- 22,407
18,076,272
- 18,076,272
3,394,832
22,407
490,771
- 3,885,603
- 22,407
Total accumulated depreciation 490,771 - 3,908,010
Total capital assets, being depreciated, net (490,771) - 14,168,262
Total capital assets (net of accumulated
depreciation) $ 26,106,136 5,941,371 - 32,047,507
3,417,239
14,659,033
During fiscal year 2023, depreciation expense in the amount of $490,771 was charged to Community
Redevelopment.
19
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
4. Long -Term Obligations
The changes in the long-term obligations for the year ended September 30, 2023 are as follows:
Amount
Balance Balance due within
9/30/2022 Additions Deletions 9/30/2023 one year
Tax Increment Revenue Note,
Tax -Exempt Series 2018A $ 6,465,000 (835,000) 5,630,000 865,000
Tax Increment Revenue Note,
Taxable Series 2018B 10,420,000 - (1,305,000) 9,115,000 1,360,000
Total notes payable 16,885,000 - (2,140,000) 14,745,000 2,225,000
Compensated absences 208,457 - (131,903) 76,554 -
Total long-term obligations $ 17,093,457 - (2,271,903) 14,821,554 2,225,000
Notes Payable
At September 30, 2023, a description of each revenue note payable is as follows:
Amount
On March 6, 2018, the Agency issued Tax Increment Revenue Note, Tax-exempt Series
2018A, in the aggregate principal amount of $10,000,000, maturing through September 1,
2029, at an interest rate of 3.25% payable semi-annually on March 1 and September 1. The
note is secured by a pledge of tax increment revenue amounts received for the Omni
Community Redevelopment area. Pledged revenues on the note includes all tax increment
funds accruing within the redevelopment area, after amounts deducted for any payments of
the Interlocal Agreement obligations and to payment on a parity therewith of other
outstanding authorized notes. The proceeds of the note are to be used to finance a portion
of the 2009 amended Omni Area Community Redevelopment Plan, including support of
affordable housing, acquisition of real estate and other capital projects (the "2017 Project"). $ 5,630,000
On July 13, 2018, the Agency issued Tax Increment Revenue Note, Taxable Series 2018B,
in the aggregate principal amount of $15,000,000, maturing through September 1, 2029, at
an interest rate of 4.49% payable semi-annually on March 1 and September 1. The note is
secured by a pledge of tax increment revenue amounts received for the Omni Community
Redevelopment area. Pledged revenues on the note includes all tax increment funds
accruing within the redevelopment area, after amounts deducted for any payments of the
Interlocal Agreement obligations and to payment on a parity of the 2018A Note. The
proceeds of the note are to be used to finance a portion of the 2009 amended Omni Area
Community Redevelopment Plan, including support of affordable housing, acquisition of
real estate and other capital projects (the "2017 Project"). 9,115,000
Total notes payable $ 14745,000
Debt service requirements of notes payable outstanding as of September 30, 2023, are as follows:
Fiscal Year(s) Principal Interest Total
2024 $ 2,225,000 592,239 2,817,239
2025 2,310,000 503,062 2,813,062
2026 2,405,000 410,441 2,815,441
2027 2,500,000 313,865 2,813,865
2028 2,600,000 213,395 2,813,395
2029 2,705,000 108,869 2,813,869
$ 14,745,000 2,141,871 16,886,871
20
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
5. Fund Balances
At September 30, 2023, the Agency reported the following governmental fund balances:
• Non spendable fund balance — portion of fund balance that is not an available resource because it
represents the fiscal year-end balance of the lease receivable in excess of the deferred inflow of
resources for the lease receivable, which is not a spendable resource.
• Restricted fund balance - these amounts are restricted to specific purposes stipulated by the Tax
• Committed fund balance - these amounts can only be used for specific purposes pursuant to
constraints imposed by the Board of the Agency. The items cannot be removed unless the Board
removes it in the same manner it was implemented.
Below is a table of fund balance categories and classifications, by fund, at September 30, 2023:
Special Redevelopment Debt
Revenue Projects Service
Spendable:
Restricted for debt service
Committed to community redevelopment
Total
24,804,808
2,521,095
$ 24,804,808 2,521,095
6. Operating Lease
In January 2014, the Agency, entered into a lease agreement with a company for certain restaurant
facilities, which was amended in January 2022. In fiscal year 2022, the Agency recognized a lease
receivable and deferred inflows of resources in accordance with GASB Statement No. 87, Leases.
However, during fiscal year 2023 the Agency agreed to cancel the lease agreement with the company
due to unforeseen circumstances with the restaurant facility. As such, the lease receivable and deferred
inflows of resources were derecognized, resulting in a loss of $53,055.
7. 401(a) Deferred Compensation Plan
All employees, including executives and general employees, of the Agency are eligible, after one year of
service, to join the ICMA Retirement Trust 401(a) Deferred Compensation Plan (the Plan). The Plan
agreement requires the Agency to contribute 8% of each executive employee's earnable compensation,
and 5% of each general employee's earnable compensation. Contributions by executive and general
employees are not required. Participants may withdraw funds at retirement or upon separation based on
a variety of payout options. The following information relates to the Agency's participation in the
401(a) Deferred Compensation Plan:
Current year's payroll
Executives General
$ 200,000 305,000
Current year's employer contributions $ 22,410 13,413
8. Risk Management
The Agency is exposed to various risks of losses related to torts; theft or damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The Agency purchases
commercial insurance for the risks of loss to which it is exposed. Policy limits and deductibles are
reviewed by management and established at amounts to provide reasonable protection from significant
financial loss. There were no losses or claims incurred during the current fiscal year, and there were no
settlements that exceeded insurance coverage during the past three fiscal years.
21
9. Commitment and Contingencies
(a) In accordance with an Economic Incentive Agreement entered into between the Agency and MNR
Max Miami, LLC (the "Developer"), upon completion of the development of the MAX Miami
mixed -use project (the "Project"), the Agency agreed to reimburse the Developer for the actual tax
increment generated by the Project, with a maximum payout of $812,500 up to and through the year
2030 for a total amount not to exceed $9,000,000.
In accordance with the Global Agreement entered into between the Agency, the County, and the
City, the Agency is committed to provide an annual contribution of $2,000,000 to Museum Park's
capital expenditure fund, payable commencing on the date of substantial completion of the park
component of the project through 2030. During the fiscal year ended September 30, 2023, the
Agency made the annual contribution of $4,000,000.
(c) Also as part of the Global Agreement, the Agency agreed to fund the City's portion of the Port
Tunnel project upon substantial completion. On October 25, 2012, the Agency's Board authorized
the issuance of an annual grant to the City, in an amount equal to the total principal (up to $50
million) and interest on the debt issued by the City to fund its portion of the Port Tunnel project, and
further authorized the Executive Director to execute a Port Tunnel Interlocal and Grant Agreement
with the City. Payments on the grant started in fiscal year 2013 and will continue through fiscal year
2030, and are pledged by tax increment funds. During the fiscal year ended September 30, 2023,
payments made on the grant to the City totaled $4,077,000.
(d) On October 30, 2019, the Board passed a resolution authorizing the Agency to rebate to a grantee the
tax increment finance ("TIF") revenues generated only from the development by the grantee of the
17th Street Apartment Project in an amount not to exceed 95% of the TIF collected from the project
annually or $420,000 annually, whichever is less, per year until 2030, or until 2047 if the life of the
Agency is extended to 2047, for a total amount not to exceed $8,471,238, with payment to
commence upon substantial completion of the project. As of September 30, 2023, the project was
not substantially complete.
On September 24, 2020, the Board passed a resolution authorizing the Agency to rebate to a grantee
the TIF revenues generated by the development of the grantee's project in an amount not to exceed
95% of the TIF collected from the project annually until 2030, or until 2047 if the life of the Agency
is extended to 2047, for a total amount not to exceed $12,935,675, with payment to commence upon
substantial completion of the project. Additionally, on the same date, an award in the amount of
$1,100,000 was approved for a mixed -use development project. As of September 30, 2023, the
project has not yet been completed and $1,100,000 was disbursed to the developer accordingly.
(f) On September 24, 2020, the Board passed a resolution approving a project grant in the amount of
$9,900,000 with a developer, derived from the Series 2018B Loan and the Agency's fiscal year
2020/2021 mandatory affordable housing budget subject to a reverter. This grant amount was paid to
developer in May 2023.
On October 28, 2021, the Board passed a resolution approving a project grant in the amount of
$15,000,000 with a developer to develop a mixed -use development project (the 14th Street Apartment
Project). The project funding is subject to availability of funds and subject to the Agency being able
to successfully secure funding for the project.
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
(b)
(e)
(g)
22
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2023
9. Commitment and Contingencies (continued)
(h) On October 28, 2021, the Board passed a resolution authorizing the Agency to rebate to a grantee the
tax increment finance ("TIF") revenues generated only from the development by the grantee of the
14th Street Apartment Project in an amount not to exceed 95% of the TIF collected from the project
annually or $816,731 annually, whichever is less, per year until 2047 if the life of the Agency is
extended to 2047, for a total amount not to exceed $13,600,000, with payment to commence upon
substantial completion of the project and project receiving a certificate of occupancy, subject to the
rents being restricted until 2047. As of September 30, 2022, the project was not substantially
complete.
On September 13, 2021, the Board passed a resolution approving funds for an emergency shoring of
the Citizens Bank Building located at 1367 North Miami Avenue in the amount of $5,800,000. As of
September 30, 2022, this project is underway and expected to be completed by March 2024.
(j) On June 9, 2022, the Board passed resolutions authorizing the Agency to rebate, to K-P 1900
Biscayne JV, LLC and K-P 2000 Biscayne JV, LLC, revenues generated only from the development
in an amount not to exceed 95% of the TIF collected from the project annually until 2030, or until
2047 if the life of the Agency is extended to 2047.
(k) On October 27, 2021, the Board passed a resolution authorizing the Agency to award a grant in an
amount not to exceed $1.3M to CAPROCK 123, LLC in the form of a forgivable loan with a term of
30 years with two (2) 10-year extensions, subject to a covenant being recorded on the Property.
(i)
10. New Pronouncements Issued
The following pronouncements were recently issued, but were not yet effective for the Agency's fiscal year
ended September 30, 2023. Management will evaluate the effect that the pronouncements will have on its
financial statements:
• GASB Statement No. 99, Omnibus 2022
• GASB Statement No. 100, Accounting Changes and Error Corrections —an amendment of GASB
Statement No. 62
• GASB Statement No. 101, Compensated Absences
11. Subsequent events
The Agency evaluated subsequent events through January 9, 2024, the date the financial statements were
available to be issued, and does not believe that there are any such events or transactions that require
disclosure.
23
Required Supplementary Information
CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Budgetary Comparison Schedule - Special Revenue Fund
(Required Supplementary Information - Unaudited)
Year ended September 30, 2023
Revenues:
Tax increment
Intergovernmental
Lease
Investment income
Other
Total revenues
Expenditures:
Current:
General government
Community redevelopment
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses):
Transfers out
Net carryover fund balance
Total other financing sources (uses)
Net change in fund balance
Fund balances - beginning
Fund balances - ending
Budgeted amounts
Original Final
$ 33,415,862 $ 33,415,862
120,324 120,324
172,800 172,800
33,708,986
Actual
33,559,256
120,324
921,923
1,497,940
12,621
33,708,986 36,112,064
1,477,245 1,477,245 1,039,843
43,178,770 43,178,770 42,602,254
44,656,015 44,656,015 43,642,097
(10,947,029) (10,947,029) (7,530,033)
Variance with
final budget -
positive
(negative)
143,394
749,123
1,497,940
12,621
2,403,078
437,402
576,516
1,013,918
3,416,996
(2,817,971) (2,817,971) (2,817,971)
13,765,000 13,765,000 (13,765,000)
10,947,029 10,947,029 (2,817,971) (13,765,000)
(10,348,004) (10,348,004)
35,152,812
$ 24,804,808
The note to the required supplementary information is an integral part of this schedule.
24
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Note to Required Supplementary Information
September 30, 2023
1. Budgetary Policy
The Agency adopts an annual budget for the operations of the Special Revenue Fund. In accordance with
generally accepted accounting principles, budgetary comparison information is disclosed for the Special
Revenue Fund.
The budget is adopted on a basis consistent with U.S. generally accepted accounting principles.
Budgetary control is maintained at the fund level.
25
Other Reports
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
Sa sol,, KI�„e, Ja�om�l,o & Ta„doe, LLP
5805 B... Lagoo., Dr,.,e I S,,*.e 145 I M,am , FL 33126
Ti:e(305) 269-8633 I Fax: (305) 265-0652 Iwww.s KJtllp.com
Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance
With Government Auditing Standards
The Board of Directors
City of Miami Omni Community Redevelopment Agency:
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the major fund of the City of Miami Omni Community Redevelopment Agency (the Agency)
as of and for the year ended September 30, 2023, and the related notes to the financial statements, which
collectively comprise the Agency's basic financial statements, and have issued our report thereon dated
January 9, 2024.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We did identify certain
deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as
items 2023-1 and 2023-2 that we consider to be significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the BID's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
26
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Amiss . mite Octemitifruv & 7iptetho, LLP
Miami, Florida
January 9, 2024
27
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Schedule of Findings and Responses
September 30, 2023
2023-1
Type of finding: Significant Deficiency in Internal Control over Financial Reporting
Condition: We noted that the former Executive Director of the Agency abated the rent for 1401 Group,
LLC (the "Group") for an indefinite period of time, starting in December 2022, as a result of utilities issues
outside of the Group's control that would not allow the Group to open their restaurant. However, that
abatement was not approved by Board prior to the abatement occurring.
Criteria or specific requirement: Any significant changes to contracts or agreements, such as abating
rent after the lease agreement has commenced, should be approved by the Board.
Effect: The former Executive Director authorized a significant change to an executed agreement without
the Board's consent.
Recommendation: We recommend that the Agency implement appropriate procedures to ensure that any
changes to executed agreements are first approved by the Board, and then documented as an amendment to
the executed agreement.
Views of responsible officials and planned corrective actions: The Agency will bring the item to the
board pursuant to Chapter 18 Article V of the Code of the City of Miami for 4/5ths vote with the required
supporting information. Additionally, the Agency will ensure that all employees have guidance on this
provision of the City Code.
2023-2
Type of finding: Significant Deficiency in Internal Control over Financial Reporting
Condition: In September 2022, the former Executive Director of the Agency hired the services of a
security company, without going through the Agency's procurement process, and without Board approval.
Payments made to the security company during fiscal year 2023 totaled approximately $611,000.
Criteria or specific requirement: Purchases of significant services and products must go through a
formal procurement process, and must be approved by the Board.
Effect: Without going through the Agency's procurement process, and obtaining Board approval, the
former Executive Director entered into an unauthorized agreement for security services.
Recommendation: We recommend that the Agency implement adequate internal controls to ensure that
significant purchases of services and products go through the Agency's procurement process, and obtain
Board approval for such purchases.
Views of responsible officials and planned corrective actions: The Agency previously adopted the
procurement code and additional safeguards and procedures via resolution. We are not sure why they were
not followed by the previous Executive Director and staff internally. Moving forward we will implement a
policy and procedure manual to guide employees internally. We will provide mandatory training resources
for procurement and ethics for all CRA employees so as to avoid future reoccurrence, this should be
completed with 6 months of hire.
28
CERTIFIED PU®Llc ACCOUNTANTS & CONSULTANTS
Sansol,, KI;I,e, Ja�ol�,;l,o & Ta.,doe, LLP
5805 B1 Lagoo., Dri.,e I Sate 145 I Ka, FL 33126
Ti:e(305) 269-8633 I Fax: (305) 265-0652 www.s K)tllp.
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
The Board of Directors
City of Miami Omni Community Redevelopment Agency:
Report on the Financial Statements
We have audited the financial statements of the City of Miami Omni Community Redevelopment Agency
(the Agency), a Component Unit of the City of Miami, Florida, as of and for the fiscal year ended
September 30, 2023, and have issued our report dated January 9, 2024.
Auditor' s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.
Other Report Requirements
We have issued our Independent Auditors' Reports on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards. Disclosures in that report, which is dated January 9, 2024, should be
considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. Corrective action has been taken to address the finding and recommendation that was reported
in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. Such disclosures are made in
note 1 to the Agency's financial statements.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the results of
our determination as to whether or not the Agency has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with
our audit, we determined that the Agency did not meet any of the conditions described in Section
218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures as of September 30, 2023. It is management's responsibility to monitor
the Agency's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
29
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Schedule of Findings and Responses
September 30, 2023
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations
to improve financial management. In connection with our audit, see the Schedule of Findings and
Responses on pages 28 for our recommendations to improve the Agency's financial management.
Specific Information
As required by Section 218.39(3)(a), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor
General, the Agency reported:
a. A total of 6 employees compensated in the last pay period of the Agency's fiscal year.
b. A total of one independent contractors to whom nonemployee compensation was paid in the last month
of the Agency's fiscal year.
c. Compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency
totaled $566,435 for the fiscal year.
d. Compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued,
regardless of contingency totaled $60,000 for the fiscal year.
e. The following is a list of construction projects with a total cost of at least $65,000 approved by the
Agency that is scheduled to begin on or after October 1 of the fiscal year being reported:
Project Name
Project
Expenditures for
FYE 9/30/2023
Bank Building
$ 2,035,367
f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the
beginning of the fiscal year being reported if the Agency amends a final adopted budget under Section
189.016(6), Florida Statutes — is not applicable, as the Agency did not amend a final adopted budget
under Section 189.016(6), Florida Statutes.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Florida Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, and the Board of Directors and management of the Agency, and is not intended to be and should
not be used by anyone other than these specified parties.
AM.* , Jc4C 44, & W640, UP
Miami, Florida
January 9, 2024
30
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
Sa so.,, KI;I,e, Ja�ol„,I,o & Ta.,doe, LLP
5805 B... Lagoo., Dr,.,e I S...,e 145 I Mia.,,i, FL 33126
Ti:e(305) 269-8633 I Fax: (305) 265-0652 www.s K)tllp.
Independent Accountant's Report on Compliance
with Sections 163.387(6) and (7), Florida Statutes
The Board of Directors
City of Miami Omni Community Redevelopment Agency:
We have examined the City of Miami Omni Community Redevelopment Agency (the Agency), a
Component Unit of the City of Miami, Florida compliance with Sections 163.387(6) and (7), Florida
Statutes regarding the redevelopment trust fund during the year ended September 30, 2023. Management is
responsible for the Agency's compliance with those requirements. Our responsibility is to express an
opinion on the Agency's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the Agency's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on the Agency's compliance with
specified requirements.
In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2023.
This report is intended solely for the information and use of the Florida Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, and
the Board of Directors and management of the Agency, and is not intended to be and should not be used by
anyone other than these specified parties.
Amiesti (J W ti, ,9 & 7iptetho, LLP
Miami, Florida
January 9, 2024
31